Banks disburse Rs 758 crore to fuel entrepreneurship in J&K

Srinagar, Oct 7: As the government takes robust measures to combat unemployment in Kashmir, banks have been urged to empower budding entrepreneurs by providing hassle-free financial support, encouraging them to create their businesses rather than waiting for government employment.

A senior finance department official disclosed that the government has issued directives to financial institutions and banks operating in Jammu and Kashmir to offer generous funding opportunities to young and aspiring entrepreneurs.

In alignment with the vision of the Jammu and Kashmir government, banks in the region have responded “admirably”.

According to data accessed by Greater Kashmir, they have approved loans totalling an impressive Rs. 758.35 Crore, benefiting 16,105 individuals under major employment generation schemes in the first quarter of the fiscal year 2023-24.

These schemes, aimed at empowering individuals from diverse backgrounds, have played a pivotal role in fostering economic growth and job creation in the region.

The disbursed funds have been allocated to several Employment Generation Schemes, including the Prime Minister’s Employment Generation Programme (PMEGP), the National Rural Livelihood Mission (NRLM), the National Urban Livelihood Mission (NULM), the Pradhan Mantri Yuva Udyamita Vikas Abhiyan (PMWMY), the Credit-Linked Capital Subsidy (CCS) for Artisans & Weavers, the Jammu and Kashmir Rural Employment Generation Programme (JKREGP), and the Scheduled Caste/Scheduled Tribe/Other Backward Classes (SC/ST/OBC) Scheme.

Government figures from the previous fiscal year reveal that banks in Jammu and Kashmir disbursed a total of Rs. 2,016.45 Crore to 48,120 beneficiaries under various Employment Generation Schemes. Notably, a significant percentage of women entrepreneurs have successfully established their businesses by availing of financial assistance under these schemes.

One such success story is Insha from Kokernag ventured into the fishing business and achieved significant success. She reached out to the Fisheries Department to initiate her business and started her farm with their support. She garnered substantial profits from this enterprise, which she began in 2016.

“I am very thankful to the fisheries department for helping me a lot. In the beginning, I faced a lot of difficulties, but with the help of the department, I found a solution to every problem,” said Insha.

Chief Secretary, Dr Arun Kumar Mehta, during a UT-level bankers’ committee meeting, emphasised, “Our primary goal is to reduce unemployment. Banks need to step forward and provide financial assistance to unemployed youth who genuinely need it for gainful employment. We must show empathy towards unemployed youth, guiding them towards prosperity and self-sufficiency through various credit facilities tailored to their entrepreneurial aspirations.”

In June, the Ministry of Home Affairs (MHA) disclosed that the unemployment rate among individuals aged 15-29 years in Jammu and Kashmir was 18.3%. It was also noted that over 29,000 vacancies had been filled in J&K after the abrogation of Article 370 in 2019.